CA Inter P5 · Chapter 4 · Question 2 of 14
Which of the following items of evidence is ordinarily the most reliable?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A bank balance confirmation sent and received directly by the auditor
Explanation
Evidence is generally more reliable when obtained from independent sources outside the entity, when obtained directly by the auditor, when in documentary form and when in original form. A confirmation received directly from the bank meets all these conditions. Photocopies, oral explanations and internally prepared documents are less reliable.
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